Concerns over sale of private hospitals to tax haven-based company

The operator of two of Hobart’s private hospitals says the sites will “continue to operate as normal” despite a planned sell-off.

The Hobart Private Hospital on the corner of Argyle and Collins streets. Picture: PATRICK GEE

THE operator of two of Hobart’s private hospitals says the sites will “continue to operate as normal” despite a planned sell-off.

Healthscope shareholders will meet in May or June to vote on Brookfield’s proposed purchase of the company — including Hobart and St Helens private hospitals.

“Healthscope values its role as a major employer in Hobart and is committed to providing Hobart residents and the broader Tasmanian community with the highest quality of care at Hobart Private and St Helens Private hospitals,” a Healthscope spokesman said.

“Our Tasmanian operations … continue to operate as normal.”

A Government spokesman said the company had publicly committed to Tasmania and “we’ve had no advice in our discussions with them that this will change”.

A tender for the Hobart Private Hospital was released earlier this year.

CRUNCH TIME LOOMS FOR THE HOBART PRIVATE HOSPITAL

Tasmanian Greens senator Nick McKim called on Treasurer Josh Frydenberg to stop Healthscope selling its hospitals to Brookfield, which is headquartered in the Cayman Islands.

“The Private Health Insurance Rebate means that Australian taxpayers will pay for around 25 per cent of the fees that will go directly into Brookfield’s accounts in the Cayman Islands, yet receive no tax in return,” Senator McKim said. “This should not be permitted to happen.”

The Treasurer’s office would not comment as the sale was in front of the Foreign Investment Review Board.

Health Minister Michael Ferguson, left, chief medical officer Tony Lawler and Premier Will Hodgman at the Hobart Reparation Hospital. Picture: RICHARD JUPE

Meanwhile, the Premier and the Health Minister on Wednesday spruiked their plan to redevelop the Repatriation Hospital site as a dedicated sub-acute and mental health campus of the Royal Hobart Hospital.

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Health Minister Michael Ferguson said improved facilities would be available in the current RHH rebuild and would be even better when they moved to the Davey Street site under the Govenrment’s masterplan.

“We’re moving mental health exactly as promised into the new tower in the city,” he said. “It means significant improvements.”

But he was unable to give a time frame for the move.